PROFIT-SHARING PLANS:
01.Core Concepts
ALLOCATION OF CONTRIBUTIONS (2 of 2) • Standard Allocation • Equal percentage to all participants • Social Security Integration • Provides higher allocations to employees whose earnings are greater than the Social Security wage base • Profit-sharing plans can only use the excess method • Age-Based Profit-Sharing Plans • Use a combination of age and compensation to allocate the plan contribution • New Comparability • Contributions are based on employee classification